Tuesday, December 13, 2011

Freeport signs labor deal for giant Grasberg mine in Indonesia

There are reports that Phoenix-based Freeport McMoRan Copper & Gold signed an agreement today to end a strike at the Grasberg mine in Indonesia, the second largest copper mine in the world. Mineweb.com says the deal provides union workers about a 40% pay raise over 2 years. [Right, Grasberg mine. Credit, MetalNewsStream]

"Freeport had warned investors it may not achieve its fourth-quarter production and sales targets owing to the [3-month long] strike."

"The mine, in Indonesia's eastern Papua region, also has the world's biggest gold reserves and produces silver."

The news report looks at some of the economic and political factors in the strike and settlement.